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1 year ago

15

A company rents office space for $10,000. The company hasn’t yet recorded payment as an expense in the financial statements beca

use it hasn’t started using the premises.

1 answer:

zepelin [54]1 year ago

6 0

What is the question?

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Joy Manufacturing Company needs to know its anticipated cash inflows for the next quarter by month. Cash sales are 25 percent of

Basile [38]

Answer:

Total cash collection= $30,250

Explanation:

Giving the following information:

Cash sales are 25 percent of total sales each month.

Sales on account:

50 percent in the month of the sale

30 percent in the month after the sale

20 percent two months after the sale.

Sales:

January $20,000

February $10,000

March $40,000

<u>We need to calculate the cash collection for March:</u>

Sales on cash March= 40,000*0.25= 10,000

Sales on account March= (40,000*0.75)*0.5= 15,000

Sales on account February= (10,000*0.75)*0.3= 2,250

Sales on account January= (20,000*0.75)*0.2= 3,000

Total cash collection= $30,250

3 0

2 years ago

You purchase a bond with a coupon rate of 5.3 percent and a clean price of $951. Assume a par value of $1,000. If the next semi

olchik [2.2K]

Answer:

The invoice price is $ 969.

Explanation:

This question requires us to tell the invoice price (dirty price) of the bond. Clean price is given in the question. So we can easily calculate invoice price by adding accrued interest in dirty price. Detail calculation is given below.

Clean price = $ 951 -A

Accrued Interest = (5.3% * 1000)/12*4 = $ 17.67 -B

Invoice price = A+B = $ 969 (approx)

4 0

1 year ago

Karen, an automobile mechanic employed by an auto dealership, is considering opening a fast-food franchise. If Karen decides not

vova2212 [387]

Answer:

The right solution is "Not Deductible".

Explanation:

If everyone's investigation for a company or starting a company fails, costs classified into two broad categories besides you:

Unless you're a person and your effort to start a company isn't successful, there are 2 kinds of investments you have had in attempting to develop yourself in the company.
The expenses clients used to have before you made an intention to open a particular business. These would be personal but non-deductible charges. They include other expenses incurred throughout a regular search for something like a company or equity investment opportunity or perhaps a thorough investigation into it.
The expenditures you have in your effort to purchase or launch a particular venture. Such charges are capital expenditures, and that as a capital loss, you will subtract them.

6 0

2 years ago

Photo Framing's cost formula for its supplies cost is $1,080 per month plus $18 per frame. For the month of November, the compan

Effectus [21]

Answer:

$526 was the spending variance in November

Explanation:

The spending variance in the month involves knowing the difference between actual supplies cost incurred in the month and the budgeted supplies cost based on actual activity

Budgeted supplies cost based on actual activity of 608 frames=$1080+(608*$18)

Budgeted supplies cost based on actual activity of 608 frames=$1080+$10,944=$12,024

Spending variance=$12,550-$12.024 =$526

The actual spend was $526 more than the budgeted spend based on actual activity,hence an unfavorable variance was recorded

6 0

1 year ago

Jason purchased ABC stock at $40 per share and DEF stock at $35 per share on the same day in 2015. Exactly 6 months later, the A

Pachacha [2.7K]

Answer:

C) ABC 5% and DEF 5.7%

Explanation:

Data provided in the question:

Purchasing Cost of Stock ABC purchased = $40 per share

Purchasing Cost of Stock DEF purchased = $35 per share

Time = 6 months

Selling price of share of ABC = $42 per share

Selling price of DEF share = $36

Dividend paid to the DEF = $0.5 each quarter i.e $0.5 twice in 6 months

Thus,

Total dividend paid to DEF = $0.5 × 2

= $1

Now,

For ABC

Total return = Selling price - Purchasing Cost

= $42 - $40

= $2 per share

thus,

Holding period return = [ Total return ÷ Purchasing cost ] × 100%

= [ $2 ÷ $40 ] × 100%

= 5%

For DEF

Total return = Selling price + Dividend received - Purchasing Cost

= $36 + $1 - $35

= $2 per share

thus,

Holding period return = [ Total return ÷ Purchasing cost ] × 100%

= [ $2 ÷ $35 ] × 100%

= 5.7%

Hence,

option C) ABC 5% and DEF 5.7%.

7 0

1 year ago